COVID-19 Takes Another Bite Out Of Agnico Eagle Earnings

Despite stringent protocols, there has been an increase in COVID-19 cases at Agnico Eagle Mines Ltd’s AEM Nunavut operations and the company is taking steps to gradually reduce the workforce and activity levels, according to BofA Securities.

The Agnico Eagle Mines Analyst: Michael Jalonen maintained a Buy rating for Agnico Eagle Mines, with the price target unchanged at $68.50.

The Agnico Eagle Mines Thesis: With rising infections, there is probably going to be little production at the Nunavut operations for the rest of 2021, Jalonen said in the note.

“AEM anticipates a resumption of Nunavut activities in early 2022, although this is a rapidly evolving situation,” the analyst wrote. “Operations at Hope Bay were idled in September due to a COVID outbreak and were resumed in November,” he added.

Jalonen reduced the earnings projections for 2021 and 2022 from $2.64 per share to $2.58 per share and from $3.32 per share to $3.23 per share, respectively.

AEM Price Action: Shares of Agnico Eagle Mines had declined by 2.68% to $50.92 at the time of publication Thursday.

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